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Unformatted text preview: but are less costly for consumers to operate. 2. Return to economic Status Quo: In this scenario the economy will resume the course it was on before the collapse. Sales of automobiles will rise slowly based on a steadily increasing disposable returning to consumers. Service and repair will continue to see a steady increase, while sales of oil, tires and coolant will continue to decrease. 3. Protracted Tight Global Credit Availability In the final scenario, and least likely, credit will remain very tight and banks will increase terms on credit. There will be a reduction in available public services, and an increase in taxes. Undercapitalized companies will continue to cut payroll, loans may defaulted on, and an increase in unemployment will lead to a reduction in sales across the board. Failures of current auto manufacturers may lead to brands being bought by foreign companies, the government could reduce tariffs on these autos. This. .....
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This note was uploaded on 07/29/2011 for the course ECON 561 taught by Professor Assefamuluneh during the Spring '10 term at University of Phoenix.
- Spring '10